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AB-2096 Gambling Control Act: licensing: corporations.(2019-2020)

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Date Published: 02/05/2020 09:00 PM
AB2096:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2096

Introduced by Assembly Member Gallagher

February 05, 2020

An act to amend Section 19883 of the Business and Professions Code, relating to gambling.


LEGISLATIVE COUNSEL'S DIGEST


AB 2096, as introduced, Gallagher. Gambling Control Act: licensing: corporations.
Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law prohibits a corporation from being eligible for a state gambling license unless its officers, directors, and shareholders individually apply for and obtain a state gambling license. Existing law also requires every key employee to apply for and obtain a key employee license. Existing law requires an officer, director, or key employee of a corporate owner licensee to apply for a license within 30 calendar days after they become an officer, director, or key employee of the corporation and requires the corporation to immediately remove an officer or director who fails to apply for a license within that 30-day period.
This bill would increase the time period for those individuals to apply for a license to 35 calendar days after they become an officer, director, or key employee.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19883 of the Business and Professions Code is amended to read:

19883.
 (a) To the extent required by this chapter, officers and directors, shareholders, lenders, holders of evidence of indebtedness, underwriters, agents, or employees of a corporate owner licensee shall be licensed individually. The corporation shall require these persons to apply for a gambling license, and shall notify the department of every change of corporate officers, directors, or key employees within 10 business days after the change. An officer, director, or key employee who is required to apply for a license shall apply for the license within 30 35 calendar days after he or she becomes they become an officer, director, or key employee.
(b) The corporation shall immediately remove any an officer or director required to apply for a license from any an office or directorship if any of the following apply to that officer or director:
(1) He or she fails They fail to apply for the license within 30 35 calendar days after becoming an officer or director.
(2) He or she is They are denied a license.
(3) His or her Their license is revoked.
(c) If the license of any officer or director is suspended, the corporation, immediately and for the duration of the suspension, shall suspend that officer or director.
(d) If any a shareholder who is required to apply for a gambling license fails to apply for the license within the time required, the shareholder shall be deemed to have been denied a license for purposes of subdivision (b) of Section 19882.
(e) If any a person, other than an officer, director, or shareholder, who is required to apply for a gambling license fails to do so, the failure may be deemed to be a failure of the corporate owner licensee to require the application.